We have discussed specific forex strategies in previous blogs but here we focus on some general types. The standard for our analysis of each time is the win ratio, and the difficulty level. If you are new in the forex market, this will hopefully be useful to you. 1. Pullback Trading What it is Pullback strategies revolve around retracement levels. They require the trader to use an indicator of their choice (could be Fibonacci or any other) to identify where the retracement will stop and the original trend continue. Why it’s popular Traders will go for pullback strategies because the risk to reward ratio is high. Since they plan to get in at a point where the currency value is highly diminished, the eventual return to the original trend will make the difference between entry and exit quite steep. So if you can get it right, you’re looking at great returns. The Challenge These strategies are often very tricky to master as there is a lot of chance involved and one can never be too sure. However, pullback trading is quite popular and widely used. There is a low winning rate though because more often than not, the market will change course ending retracement and going back to the original trend at a level the traded did not anticipate.